US-Iran war crisis shows Malaysia not built to survive an oil shock, think tank warns

US-Iran war crisis shows Malaysia not built to survive an oil shock, think tank warns



Vehicles are seen on the North-South Expressway on March 19, 2026. — Bernama pic

Friday, 03 Apr 2026 9:46 AM MYT


KUALA LUMPUR, April 3 — The global oil shock triggered by the US-Israel war against Iran has exposed a fundamental weakness in Malaysia’s economic structure: its overwhelming dependence on cars and subsidised fuel, according to environmental think tank RimbaWatch.

In a new analysis, the group argues that the crisis, which has caused Malaysia’s monthly RON95 subsidy bill to skyrocket from RM700 million to a staggering RM4 billion, is a symptom of a much deeper structural vulnerability.

While the government has initiated work-from-home (WFH) for the public sector, RimbaWatch argues that a wider, mandated implementation is a powerful short-term tool to manage the fiscal bleed.

The think tank calculates that if just half of the Klang Valley’s workforce worked from home, the government could save RM169 million in fuel subsidies every month, or over RM2 billion annually.


However, the group warns that WFH is merely a temporary fix for a much deeper problem.

“Klang Valley commuters waste an estimated 580 hours in traffic every year, costing them an estimated RM9,000 annually in vehicle maintenance and fuel,” the group said.

“The current spike in fossil fuel energy prices underscores the need for structural changes in Malaysia’s transport accessibility, energy sustainability and security, with fossil fuels being an increasingly scarce, expensive and polluting source of energy,” it said.

Citing data on air pollution, which costs the nation an estimated RM303 billion annually in public health expenses and leads to 32,000 preventable deaths each year, RimbaWatch contends that the reliance on private vehicles is a persistent national crisis.

Instead of spending billions to prop up a vulnerable system, RimbaWatch urges a radical reallocation of funds towards building a more resilient public transport network.

The report notes that the potential annual subsidy bill of over RM48 billion could instead fund a transformative package, including 15,000 electric buses, thousands of kilometres of walkways and protected bicycle lanes, and hundreds of new electric trainsets.

The think tank also calls for an accelerated phase-out of fossil fuels in favour of cheaper and more geopolitically secure renewable energy sources like solar.

***

"Someone' screwed up our public transport system. Take Penang for example - we had a marvellous Island-wide effective and cheap public transport system with Lim Seng Seng, Hin, Yellow and City Council buses providing our transportation. Who the Frigg removed them?